Pakistan : Sugar mills seek immediate export of surplus stocks
Pakistan’s sugar industry has urged the government to allow exports of up to 767,000 tons from a projected surplus of 1.32 million tons in 2025–26. Mills cite weak domestic prices and rising costs, saying exports could generate $400–500 million and help ease stock pressure while boosting foreign exchange reserves.
ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has urged the government to allow the immediate export of surplus sugar from the ongoing 2025-26 crushing season, saying the move could help strengthen the country’s foreign exchange reserves.
In a statement, a spokesperson for the association said carry-forward stock from the previous season stood at 271,704 metric tons as of November 15, 2025. That total included 117,541 metric tons of locally produced sugar and 154,163 metric tons of imported sugar.
The spokesperson said data from the Federal Board of Revenue (FBR), dated March 31, 2026, showed that 7.573 million metric tons of sugar had been produced during the current crushing season, which began in November 2025. According to the association, that figure is expected to rise to 7.6 million tons once the remaining mills complete processing.
The association further said that, based on the average of the previous two years, another 86,809 metric tons of sugar from sugar beet is expected to be produced between April and June 2026. It said that when this quantity is added to the carry-forward stock and current season output, total sugar availability will reach 7.958 million tons.
Referring to FBR figures, the PSMA spokesperson said the country’s annual sugar supply between November 16, 2024 and November 15, 2025 was 6.476 million tons. This, the association said, worked out to average monthly consumption of 539,662 tons.
Taking population growth of 2.5% into account, the association projected annual sugar consumption for the next year at 6.638 million tons.
“This indicates a surplus stock of 1.320 million metric tons. Even after maintaining an additional one-month strategic reserve, there will still be a surplus of 767,000 tons,” the spokesperson said and called for the excess quantity to be exported.
According to millers, the industry is facing serious difficulties in holding such large stocks at a time of weak demand. The association said sugar prices are currently below production costs, which it attributed mainly to the continued rise in sugarcane prices and other input costs, causing losses for the industry.
The spokesperson also linked the export demand to the broader external sector situation, saying that because of the Iran-US conflict, international oil prices are rising and Pakistan is spending a significant amount of foreign exchange on oil imports to meet domestic requirements.
In that context, the association said the government should permit the export of 767,000 tons of surplus sugar. According to the spokesperson, such exports could generate between $400 million and $500 million.
The PSMA maintained that the available figures show a substantial surplus after accounting for projected domestic consumption and an additional one-month strategic reserve. On that basis, it asked the government to move quickly on an export decision for the excess stock from the current season.
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Source : Pakistan Today
